Although homeownership rates are rising for Americans of all races, specific challenges still exist for Black Americans. Experts in real estate are stepping in to assist purchasers in overcoming those hurdles.
According to the National Association of Realtors (NAR) “2025 Snapshot of Race and Home Buying in America,” the Black homeownership rate in the U.S. saw the largest year-over-year rise among racial groups in 2023, but it still lags well below the White homeownership rate.
“This report provides the housing ecosystem with in-depth information about how racial and ethnic groups approach the housing market,” said Jessica Lautz, Deputy Chief Economist and VP of Research for NAR. “It helps industry professionals by providing detailed local information about challenges and success.”
The latest real estate market intelligence study focuses on who is joining the U.S. housing market and how homeownership patterns across various racial and ethnic groups are influenced by affordability, financing accessibility, and demography. It looks into racial group homeownership rates in each of the 50 states and the District of Columbia. The paper also looks at home buyer demographics, reasons for buying, types of properties purchased, and financial profiles, with a particular focus on racial differences, utilizing data from NAR’s 2024 Profile of Home Buyers and Sellers.
Significant Racial Disparities in Homeownership Persist Across the U.S.
Black homeownership rates in the U.S. are still significantly lower compared to that of Whites (72.4%; +0.1 percentage points), Asians (63.4%; +0.1 percentage points), and Hispanics (51.0%; -0.1 percentage points), even though the Black homeownership rate (44.7%; +0.6 percentage points) saw the largest annual gain of any race in 2023.
The U.S. homeownership rate was higher in 2023 (65.2%) than it was ten years prior (63.5% in 2013), with over 11.8 million more homeowners, despite persistent affordability issues. Notably, the 2022 year-over-year fall in homeownership was reversed by the 2023 annual rise.
Black Americans (+2.8 percentage points or nearly 1.2 million homeowners), Asian Americans (+5.6 percentage points or 1.6 million homeowners), and White Americans (+3.6 percentage points or 702,200 homeowners) all saw increases in homeownership rates, but Hispanic Americans saw the biggest increase (+5.8 percentage points or 3.5 million homeowners) of any racial group since 2013. The Black-white homeownership rate difference has increased by 28 percentage points since 2013, despite improvements.
“Today’s first-time home buyers continue to face housing affordability and credit-access challenges, but the situation nationwide varies when assessing purchasing power,” Lautz said. “Buyers have always had to consider total home costs—including utilities, insurance and commuting expenses—which are especially important when taking the initial steps into ownership.”
The 25–40 age range is when one in three Hispanic households are ready to buy a property. There are 21% more young Hispanic households in Hispanic areas than there were ten years ago, and Asian households between the ages of 25 and 40 have grown by 34% since 2013. Over 30% of renters’ income is spent on rent. Black renters had more difficulty finding affordable housing than their White counterparts in 46 states.
In roughly 39 states, Black homeowners bear a greater burden of housing expenditures, with housing expenses accounting for over 30% of their income. Compared to White (11%) and Asian (9%) applicants, Black (21%) and Hispanic (17%) applicants had substantially higher mortgage denial rates.
Changes in Homeownership Rates Across the Years
U.S. homes spent an average of $860 annually for home insurance 10 years ago. That amount increased by 53% to $1,310 in 2023. It may come as no surprise to some, but Black homeowners pay the highest rates for homeowners’ insurance of any racial group. Black homeowners’ insurance costs in 2023 were $1,360, Asian homeowners’ costs were $1,330, White homeowners’ costs were $1,310, and Hispanic homeowners’ were $1,300.
White homebuyers (83%) accounted for the biggest share of all buyers, followed by Black buyers (7%), Hispanic buyers (6%), Asian buyers (4%), and other buyers (3%), according to NAR’s 2024 Profile of Home Buyers and Sellers. Black Americans make up 49% of first-time homebuyers, followed by Asians (43%), Hispanics (41%), and White people (20%).
“Non-White home buyers are more likely to be first-time buyers, underscoring the importance of changing demographics and the age of local populations, which will increase non-White homeownership over time,” Lautz said.
More Black homebuyers than any other demographic used community/government down payment help programs (5%) and 401(k)/pension (11%; down from 17% last year) as sources of down payment. The average down payment was 19% for white buyers and 21% for Asian buyers. Student loan debt was indicated by 23% of Hispanic purchasers (down from 29% last year) and 42% of Black buyers (up from 41% last year). At $30,000 each, Black and White buyers owed the most in college loans.
Customers who were provided a particular loan product were more likely to report prejudice during their transaction if they were Black (47%) or Asian (33%). Some 2% of Hispanic consumers and 5% of Asian and Black consumers reported racial prejudice.
Homeownership Rates Across Racial & Ethnic Groups — Household Trends, Challenges & More
The 2025 Snapshot of Race and Home Buying in America report tracks homeownership rates across racial and ethnic groups, identifying trends and potential challenges nationwide. Here’s what NAR’s race and home buying report found:
Black Households:
According to the survey, despite the historic increase in 2023, the Black homeownership rate is still around 45%, which is lower than that of other groups.
Over the 10 years, the number of Black households who own a home has increased by about 1.2 million, or 2.8 percentage points. The report states that although the increasing trend in Black homeownership is commendable, it has not kept up with the growth rates of other racial/ethnic groups.
- States with highest homeownership rates: Mississippi (58%), Delaware (56%) and South Carolina (56%)
- States with lowest homeownership rates: North Dakota (10%), Montana (20%) and Maine (21%)
- States with the highest share of renter households that can afford to buy a typical home: North Dakota (64%), Wyoming (35%) and Kansas (33%)
- Median household income of recent buyers: $100,000
- Median down payment: 8%
- Percentage of purchasers who were first-time buyers: 49%
- The purchasing power of the average first-time buyer: $163,080
Hispanic Households:
Hispanic Americans have seen the largest homeownership gains in the last decade, rising from 45.2% in 2013 to 51% in 2023—an increase of 3.5 million households since 2013. The report cites population growth and rising household incomes for accelerating ownership rates among Hispanics.
- States with highest homeownership rates: New Mexico (67%), Vermont (66%) and Michigan (63%)
- States with lowest homeownership rates: North Dakota (26%), New York (28%) and the District of Columbia (30%)
- States with the highest share of renter households that can afford to buy a typical home: Vermont (46%), Missouri (43%) and Kansas (41%)
- Median household income of recent buyers: $96,300
- Median down payment: 13%
- Percentage of purchasers who were first-time buyers: 41%
- The purchasing power of the average first-time buyer: $214,100
White Households:
Despite a roughly 3.4 million household reduction in the White population over the past decade, the White homeownership rate has increased. The White homeownership rate did, however, rise by roughly 702,200 households, from 68.8% in 2013 to 72.4% in 2023.
- States with highest homeownership rates: Delaware (81%), Mississippi (80%) and South Carolina (80%)
- States with lowest homeownership rates: District of Columbia (48%), Hawaii (58%) and California (63%).
- States with the highest share of renter households that can afford to buy a typical home: Mississippi (45%), Illinois (38%) and West Virginia (36%)
- Median household income of recent buyers: $110,000
- Median down payment: 19%
- Percentage of purchasers who were first-time buyers: 20%
- The purchasing power of the average first-time buyer: $220,770
One positive aspect is that, in 2023 alone, the Black homeownership rate increased by 0.6 percentage points to 44.7%, the biggest year-over-year increase of any racial group. However, that still falls well short of the 72.4% homeownership rate for White people, and the difference has only widened. However, pert he survey, housing affordability, access to financing and demographic trends are all variables that continue to affect homeownership rates.
To read the full report, click here.
